0001104659-21-058986 | 10-Q | XBRL Viewer

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2021	Apr. 22, 2021
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
Document Transition Report	false
Entity File Number	000-23125
Entity Registrant Name	OSI SYSTEMS, INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	33-0238801
Entity Address, Address Line One	12525 Chadron Avenue
Entity Address, City or Town	Hawthorne
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90250
City Area Code	310
Local Phone Number	978-0516
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	OSIS
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Interactive Data Current	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,980,207
Entity Central Index Key	0001039065
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 92,465	$ 76,102
Accounts receivable, net	258,594	269,840
Inventories	283,523	241,226
Prepaid expenses and other current assets	26,828	30,541
Total current assets	661,410	617,709
Property and equipment, net	125,477	127,936
Goodwill	319,211	310,627
Intangible assets, net	130,058	128,279
Other assets	89,804	83,990
Total assets	1,325,960	1,268,541
CURRENT LIABILITIES:
Bank lines of credit	0	59,000
Current portion of long-term debt	925	926
Accounts payable	122,719	84,940
Accrued payroll and related expenses	40,860	46,127
Advances from customers	48,132	28,155
Other accrued expenses and current liabilities	113,433	110,953
Total current liabilities	326,069	330,101
Long-term debt	273,997	267,072
Deferred income taxes	1,507	5,846
Other long-term liabilities	108,494	93,370
Total liabilities	710,067	696,389
Commitments and contingencies (Note 10)
STOCKHOLDERS' EQUITY:
Preferred stock, $0.001 par value- 10,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.001 par value-100,000,000 shares authorized; issued and outstanding, 18,011,982 shares at June 30, 2020 and 17,980,207 shares at March 31, 2021	110,744	122,553
Retained earnings	522,948	474,793
Accumulated other comprehensive loss	(17,799)	(25,194)
Total stockholders' equity	615,893	572,152
Total liabilities and stockholders' equity	$ 1,325,960	$ 1,268,541

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Net revenues:
Total net revenues	$ 283,787	$ 292,883	$ 814,704	$ 889,077
Cost of goods sold:
Total cost of goods sold	179,768	183,776	512,853	569,986
Gross profit	104,019	109,107	301,851	319,091
Operating expenses:
Selling, general and administrative	57,906	65,576	172,624	191,655
Research and development	13,932	15,358	39,798	44,485
Impairment, restructuring and other charges (benefit), net	(285)	4,548	7,912	1,520
Total operating expenses	71,553	85,482	220,334	237,660
Income from operations	32,466	23,625	81,517	81,431
Interest and other expense, net	(4,167)	(4,706)	(12,589)	(14,286)
Income before income taxes	28,299	18,919	68,928	67,145
(Provision) benefit for income taxes	(9,526)	639	(20,773)	(5,858)
Net income	$ 18,773	$ 19,558	$ 48,155	$ 61,287
Earnings per share:
Basic	$ 1.04	$ 1.08	$ 2.68	$ 3.36
Diluted	$ 1.03	$ 1.06	$ 2.63	$ 3.28
Shares used in per share calculation:
Basic	17,969	18,182	17,981	18,251
Diluted	18,298	18,513	18,278	18,693
Products
Net revenues:
Total net revenues	$ 217,124	$ 213,257	$ 608,238	$ 646,790
Cost of goods sold:
Total cost of goods sold	144,958	141,069	409,692	436,120
Services
Net revenues:
Total net revenues	66,663	79,626	206,466	242,287
Cost of goods sold:
Total cost of goods sold	$ 34,810	$ 42,707	$ 103,161	$ 133,866

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
Net income	$ 18,773	$ 19,558	$ 48,155	$ 61,287
Other comprehensive income (loss):
Foreign currency translation adjustment	(503)	(8,314)	7,219	(8,726)
Other	59	10	176	29
Other comprehensive income (loss)	(444)	(8,304)	7,395	(8,697)
Comprehensive income	$ 18,329	$ 11,254	$ 55,550	$ 52,590

- Definition

Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22595-107794

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1448-109256

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=121326447&loc=d3e1377-109256

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 11
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22694-107794

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 45
-Paragraph 60B
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121326447&loc=SL5780133-109256

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 250
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22583-107794

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

+ Details

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Jun. 30, 2019	$ 168,913	$ 399,541	$ (16,727)	$ 551,727
Balance (in shares) at Jun. 30, 2019	18,167,020
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 4,112			4,112
Exercise of stock options (in shares)	201,003
Vesting of RSUs (in shares)	388,756
Shares issued under employee stock purchase program	$ 4,286			4,286
Shares issued under employee stock purchase program (in shares)	71,595
Stock-based compensation expense	$ 18,097			18,097
Repurchase of common stock	$ (51,775)			(51,775)
Repurchase of common stock (in shares)	(562,707)
Taxes paid related to net share settlement of equity awards	$ (26,761)			(26,761)
Taxes paid related to net share settlement of equity awards (in shares)	(255,042)
Net income		61,287		61,287
Other comprehensive income (loss)			(8,697)	(8,697)
Balance at Mar. 31, 2020	$ 116,872	460,828	(25,424)	552,276
Balance (in shares) at Mar. 31, 2020	18,010,625
Balance at Dec. 31, 2019	$ 133,566	441,270	(17,120)	557,716
Balance (in shares) at Dec. 31, 2019	18,267,574
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 80			80
Exercise of stock options (in shares)	1,041
Vesting of RSUs (in shares)	1,671
Shares issued under employee stock purchase program	$ 2,221			2,221
Shares issued under employee stock purchase program (in shares)	36,758
Stock-based compensation expense	$ 5,837			5,837
Repurchase of common stock	$ (24,781)			(24,781)
Repurchase of common stock (in shares)	(295,833)
Taxes paid related to net share settlement of equity awards	$ (51)			(51)
Taxes paid related to net share settlement of equity awards (in shares)	(586)
Net income		19,558		19,558
Other comprehensive income (loss)			(8,304)	(8,304)
Balance at Mar. 31, 2020	$ 116,872	460,828	(25,424)	552,276
Balance (in shares) at Mar. 31, 2020	18,010,625
Balance at Jun. 30, 2020	$ 122,553	474,793	(25,194)	$ 572,152
Balance (in shares) at Jun. 30, 2020	18,011,982			18,011,982
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 1,187			$ 1,187
Exercise of stock options (in shares)	87,235
Vesting of RSUs (in shares)	310,939
Shares issued under employee stock purchase program	$ 4,215			4,215
Shares issued under employee stock purchase program (in shares)	68,180
Stock-based compensation expense	$ 19,386			19,386
Repurchase of common stock	$ (25,051)			(25,051)
Repurchase of common stock (in shares)	(322,588)
Taxes paid related to net share settlement of equity awards	$ (11,546)			(11,546)
Taxes paid related to net share settlement of equity awards (in shares)	(175,541)
Net income		48,155		48,155
Other comprehensive income (loss)			7,395	7,395
Balance at Mar. 31, 2021	$ 110,744	522,948	(17,799)	$ 615,893
Balance (in shares) at Mar. 31, 2021	17,980,207			17,980,207
Balance at Dec. 31, 2020	$ 100,816	504,175	(17,355)	$ 587,636
Balance (in shares) at Dec. 31, 2020	17,933,256
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 624			624
Exercise of stock options (in shares)	9,703
Vesting of RSUs (in shares)	6,519
Shares issued under employee stock purchase program	$ 2,193			2,193
Shares issued under employee stock purchase program (in shares)	35,539
Stock-based compensation expense	$ 7,565			7,565
Repurchase of common stock	$ (235)			(235)
Repurchase of common stock (in shares)	(2,452)
Taxes paid related to net share settlement of equity awards	$ (219)			(219)
Taxes paid related to net share settlement of equity awards (in shares)	(2,358)
Net income		18,773		18,773
Other comprehensive income (loss)			(444)	(444)
Balance at Mar. 31, 2021	$ 110,744	$ 522,948	$ (17,799)	$ 615,893
Balance (in shares) at Mar. 31, 2021	17,980,207			17,980,207

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 48,155	$ 61,287
Adjustments to reconcile net income to net cash provided by operating activities, net of effects from acquisitions:
Depreciation and amortization	31,433	37,807
Stock-based compensation expense	19,386	18,097
Provision for losses on accounts receivable	6,176	2,641
Deferred income taxes	(1,364)	(50)
Amortization of debt discount and issuance costs	7,277	6,984
Impairment charges	552	3,258
Other	(217)	137
Changes in operating assets and liabilities-net of business acquisitions:
Accounts receivable	6,714	(23,945)
Inventories	(43,162)	28,871
Prepaid expenses and other assets	(4,263)	(18,127)
Accounts payable	37,113	10,243
Accrued payroll and related expenses	363	(5,655)
Advances from customers	19,468	(9,846)
Other	3,422	(6,149)
Net cash provided by operating activities	131,053	105,553
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of property and equipment	(11,155)	(16,062)
Purchases of certificates of deposit	(4,820)
Proceeds from maturities of certificates of deposit	2,690
Acquisition of business, net of cash acquired	(3,000)	(3,521)
Payments for intangible and other assets	(9,878)	(8,764)
Net cash used in investing activities	(26,163)	(28,347)
CASH FLOWS FROM FINANCING ACTIVITIES
Net borrowings (repayments) on bank lines of credit	(59,000)	7,000
Proceeds from long-term debt	413	592
Payments on long-term debt	(778)	(723)
Proceeds from exercise of stock options and employee stock purchase plan	5,402	8,398
Payments of contingent consideration	(854)	(5,265)
Repurchases of common stock	(25,051)	(51,775)
Taxes paid related to net share settlement of equity awards	(11,546)	(26,761)
Net cash used in financing activities	(91,414)	(68,534)
Effect of exchange rate changes on cash	2,887	(3,962)
Net change in cash and cash equivalents	16,363	4,710
Cash and cash equivalents-beginning of period	76,102	96,316
Cash and cash equivalents-end of period	92,465	101,026
Cash paid, net during the period for:
Interest	5,721	6,773
Income taxes	$ 8,074	$ 16,141

Basis of Presentation

9 Months Ended

Mar. 31, 2021

Basis of Presentation

Basis of Presentation

1. Basis of Presentation

The condensed consolidated financial statements include the accounts of OSI Systems, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded in accordance with SEC rules and regulations and GAAP applicable to interim unaudited financial statements. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for audited annual financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. These unaudited condensed consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2020 filed with the SEC. The results of operations for the three and nine months ended March 31, 2021 are not necessarily indicative of the operating results to be expected for the full 2021 fiscal year or any future periods.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and costs of sales during the reporting period. The most significant of these estimates and assumptions for our company relate to contract revenue, profit and loss recognition, fair values of assets acquired and liabilities assumed in business combinations, values for inventories reported at lower of cost or net realizable value, stock-based compensation expense, income taxes, accrued warranty costs and the recoverability, useful lives and valuation of recorded amounts of long-lived assets, identifiable intangible assets and goodwill. Changes in estimates are reflected in the periods during which they become known. Due to the inherent uncertainty involved in making estimates, our actual amounts reported in future periods could differ materially from these estimates.

Earnings Per Share Computations

We compute basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. We compute diluted earnings per share by dividing net income available to common stockholders by the sum of the weighted average number of common shares and dilutive potential common shares outstanding during the period. Potential common shares consist of the shares issuable upon the exercise of stock options and restricted stock unit awards under the treasury stock method. The underlying equity component of the 1.25% convertible senior notes due 2022 (the “Notes”) discussed in Note 8 to the condensed consolidated financial statements will have a net impact on diluted earnings per share when the average price of our common stock exceeds the conversion price of $107.46 because the principal amount of the Notes is intended to be settled in cash upon conversion. There was no dilutive effect of the Notes for the three and nine months ended March 31, 2020 and 2021.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Net income available to common stockholders	$	19,558	$	18,773	$	61,287	$	48,155

Weighted average shares outstanding—basic		18,182		17,969		18,251		17,981
Dilutive effect of equity awards		331		329		442		297
Weighted average shares outstanding—diluted		18,513		18,298		18,693		18,278

Basic earnings per share	$	1.08	$	1.04	$	3.36	$	2.68
Diluted earnings per share	$	1.06	$	1.03	$	3.28	$	2.63
Shares excluded from diluted earnings per share due to their anti-dilutive effect		145		51		100		64

Cash and Cash Equivalents

We consider all highly liquid investments with maturities of three months or less as of the acquisition date to be cash equivalents.

Our cash and cash equivalents totaled $92.5 million at March 31, 2021. Of this amount, approximately 58% was held by our foreign subsidiaries and subject to repatriation tax considerations. These foreign funds were held primarily by our subsidiaries in the United Kingdom, Malaysia, Canada, Singapore and India and to a lesser extent in Puerto Rico and Albania among other countries. We have cash holdings in financial institutions that exceed insured limits for such institutions; however, we mitigate this risk by utilizing international financial institutions of high credit quality.

Fair Value of Financial Instruments

Our financial instruments consist primarily of cash and cash equivalents, insurance company contracts, accounts receivable, accounts payable, debt instruments and foreign currency forward contracts. The carrying values of financial instruments, other than long-term debt instruments, are representative of their fair values due to their short-term maturities. The carrying values of our long-term debt instruments are considered to approximate their fair values, as the interest rates of these instruments are variable or comparable to current rates for financing available to us. The fair values of our foreign currency forward contracts were not significant as of March 31, 2021.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Level 1 category includes assets and liabilities measured at quoted prices in active markets for identical assets and liabilities. The Level 2 category includes assets and liabilities measured from observable inputs other than quoted market prices. The Level 3 category includes assets and liabilities for which valuation inputs are unobservable and significant to the fair value measurement. Our contingent payment obligations related to acquisitions, which are further discussed in Note 10 to the condensed consolidated financial statements, are in the Level 3 category for valuation purposes.

The fair values of our financial assets and liabilities are categorized as follows (in thousands):


	June 30, 2020								March 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets :
Insurance company contracts	$	—	$	37,155	$	—	$	37,155	$	—	$	45,015	$	—	$	45,015
Liabilities:
Contingent consideration	$	—	$	—	$	13,867	$	13,867	$	—	$	—	$	19,337	$	19,337

Derivative Instruments and Hedging Activity

Our use of derivatives consists of foreign currency forward contracts. These forward contracts are utilized to partially mitigate certain balance sheet exposures or used as a net investment hedge to protect against potential changes resulting from short-term foreign currency fluctuations. These contracts have original maturities of up to three months. We do not use hedging instruments for speculative purposes.

The net investment hedge has been designated as a hedge instrument and accounted for under Accounting Standards Codification ("ASC”) 815 “Derivatives and Hedging”. Hedge effectiveness is assessed using the spot method, consistent with guidance in ASC 815 whereby the change in fair value of the forward contract is recorded in the same manner as the related currency translation adjustments, within other comprehensive income, as the hedging instrument is expected to be fully effective unless the amount hedged exceeds the net investment in the foreign operation, or the foreign operation is liquidated. We settled the net investment hedge in the second quarter of fiscal 2021, and the amount recorded in other comprehensive loss was not significant. There were no net investment hedges outstanding as of March 31, 2021.

The net gains or losses from the foreign currency forward contracts, which are not designated as hedge instruments, are reported in the consolidated income statement. We initiated these forward contracts in the first quarter of fiscal 2021 and the amounts reported in the consolidated income statement for the three and nine months ended March 31, 2021 were not significant. The fair value of our forward foreign exchange contracts is estimated using a standard valuation model and market-based observable inputs over the contractual term. Unrealized gains are recognized as assets and unrealized losses are recognized as liabilities. As of March 31, 2021, we held foreign currency forward contracts with notional amounts totaling $23.5 million. Unrealized gains and losses from the forward currency forward contracts as of March 31, 2021 were not significant. There were no derivative instruments as of June 30, 2020.

Recently Adopted Accounting Pronouncements

In August 2018, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance under Accounting Standards Update (“ASU”) 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU eliminates requirements for certain disclosures and requires additional disclosures under defined benefit pension plans and other post-retirement plans. We adopted this new guidance in the first quarter of fiscal 2021, and it did not have a significant impact on our disclosures in the consolidated financial statements.

In August 2018, the FASB issued authoritative guidance under ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU requires implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software and deferred over the noncancellable term of the cloud computing arrangements plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. We adopted this new guidance in the first quarter of fiscal 2021, and it did not have a significant impact on our consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which temporarily simplifies the accounting for contract modifications, including hedging relationships, due to the transition from LIBOR and other interbank offered rates to alternative reference interest rates. For example, entities can elect not to remeasure the contracts at the modification date or reassess a previous accounting determination if certain conditions are met. Additionally, entities can elect to continue applying hedge accounting for hedging relationships affected by reference rate reform if certain conditions are met. Modifications to debt agreements for a change in the reference interest rate will be accounted for by prospectively adjusting the effective interest rate. The new standard was effective upon issuance and did not have a significant impact on our consolidated financial statements. ASU 2020-04 generally can be applied to applicable contract modifications through December 31, 2022. We are currently evaluating the impact of the transition from LIBOR to alternative reference interest rates; however the adoption of this new guidance for future modifications to contracts, if any, is not expected to have a significant impact on our consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity ("ASU 2020-06"). Under ASU 2020-06, the embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost and a convertible preferred stock will be accounted for as a single equity instrument measured at its historical cost, as long as no other features require bifurcation and recognition as derivatives. By removing those separation models, the interest rate of convertible debt instruments typically will be closer to the coupon interest rate. ASU 2020-06 also provides for certain disclosures with regard to convertible instruments and associated fair values. We are required to adopt this new guidance in the first quarter of fiscal 2023. Early adoption is permitted for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently evaluating the potential impact of adoption of this guidance on our consolidated financial statements.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes ("ASU 2019-12"). ASU 2019-12 removes certain exceptions to the general principles of ASC 740 and is intended to improve consistency and simplify GAAP by clarifying and amending existing guidance for income taxes and related topics. We are required to adopt this new guidance in the first quarter of fiscal 2022. Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. We are currently evaluating the potential impact of adoption of this guidance on our consolidated financial statements.

Balance Sheet Details

9 Months Ended

Mar. 31, 2021

Balance Sheet Details

Balance Sheet Details

3. Balance Sheet Details

The following tables provide details of selected balance sheet accounts (in thousands):


	June 30,		March 31,
Accounts receivable, net	2020		2021
Accounts receivable	$	287,488	$	281,970
Less allowance for doubtful accounts		(17,648)		(23,376)
Total	$	269,840	$	258,594


	June 30,		March 31,
Inventories	2020		2021
Raw materials	$	132,797	$	144,043
Work-in-process		50,023		68,853
Finished goods		58,406		70,627
Total	$	241,226	$	283,523



	June 30,		March 31,
Property and equipment, net	2020		2021
Land	$	16,516	$	16,345
Buildings, civil works and improvements		57,709		57,645
Leasehold improvements		9,052		8,654
Equipment, furniture and fixtures		149,310		156,006
Computer software		18,217		23,052
Computer software implementation in process		11,817		10,615
Construction in process		3,598		4,459
Total		266,219		276,776
Less accumulated depreciation and amortization		(138,283)		(151,299)
Property and equipment, net	$	127,936	$	125,477

Depreciation and amortization expense for property and equipment was $5.4 million and $5.5 million for the three months ended March 31, 2020 and 2021, respectively, and $15.9 million and $16.3 million for the nine months ended March 31, 2020 and 2021, respectively.

Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets

Goodwill and Intangible Assets

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill by segment for the nine-month period ended March 31, 2021 were as follows (in thousands):


					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2020	$	203,627	$	39,983	$	67,017	$	310,627
Goodwill acquired or adjusted during the period		1,905		3,244		—		5,149
Foreign currency translation adjustment		264		333		2,838		3,435
Balance as of March 31, 2021	$	205,796	$	43,560	$	69,855	$	319,211

Intangible assets consisted of the following (in thousands):


		June 30, 2020						March 31, 2021
	Weighted	Gross						Gross
	Average	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Lives	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	8 years	$	41,332	$	(16,295)	$	25,037	$	45,421	$	(14,817)	$	30,604
Patents	19 years		9,962		(2,584)		7,378		9,890		(2,790)		7,100
Developed technology	10 years		55,719		(19,556)		36,163		60,923		(24,352)		36,571
Customer relationships/backlog	7 years		64,128		(32,110)		32,018		62,577		(35,929)		26,648
Total amortizable assets			171,141		(70,545)		100,596		178,811		(77,888)		100,923
Non-amortizable assets:
In-process research and development			533		—		533		533		—		533
Trademarks			27,150		—		27,150		28,602		—		28,602
Total intangible assets		$	198,824	$	(70,545)	$	128,279	$	207,946	$	(77,888)	$	130,058

Amortization expense related to intangible assets was $4.9 million and $4.8 million for the three months ended March 31, 2020 and 2021, respectively. For the nine months ended March 31, 2020 and 2021, amortization expense related to intangible assets was $14.3 million and $15.1 million, respectively.

At March 31, 2021, the estimated future amortization expense for intangible assets was as follows (in thousands):


2021 (remaining 3 months)	$	4,660
2022		17,152
2023		17,377
2024		16,705
2025		13,986
Thereafter		31,043
Total	$	100,923

Software development costs for software products incurred before establishing technological feasibility are charged to operations. Software development costs incurred after establishing technological feasibility are capitalized on a product-by-product basis until the product is available for general release to customers at which time amortization begins. Annual amortization, charged to cost of goods sold, is the amount computed using the ratio that current revenues for a product bear to the total current and anticipated future revenues for that product. In the event that future revenues are not estimable, such costs are amortized on a straight-line basis over the remaining estimated economic life of the product. Amortizable assets that have not yet begun to be amortized are included in Thereafter in the table above. For the three months ended March 31, 2020 and 2021, we capitalized software development costs in the amounts of $4.5 million and $2.6 million, respectively. For the nine months ended March 31, 2020 and 2021, we capitalized software development costs in the amounts of $7.7 million and $9.1 million, respectively.

Contract Assets and Liabilities

9 Months Ended

Mar. 31, 2021

Contract Assets and Liabilities

Contract Assets and Liabilities

5. Contract Assets and Liabilities

We enter into contracts to sell products and provide services, and we recognize contract assets and liabilities that arise from these transactions. We recognize revenue and corresponding accounts receivable according to ASC 606. When we recognize revenue in advance of the point in time at which contracts give us the right to invoice a customer, we record this as unbilled revenue, which is included in accounts receivable, net, on the consolidated balance sheet. We may also receive consideration, per the terms of a contract, from customers prior to transferring goods to the customer. We record customer deposits as contract liabilities. Additionally, we may receive payments, most typically under service and warranty contracts, at the onset of the contract and before services have been performed. In such instances, we record a deferred revenue liability. We recognize these contract liabilities as sales after all revenue recognition criteria are met.

Contract assets and liabilities were as follows (in thousands):


	June 30,		March 31,
Contract Assets:	2020		2021		$ Change		% Change
Unbilled revenue	$	43,011	$	46,866	$	3,855	9	%


Contract Liabilities:
Advances from customers	$	28,155	$	48,132	$	19,977	71	%
Deferred revenue—current		32,863		37,075		4,212	13	%
Deferred revenue—long-term		13,214		13,470		256	2	%

Contract assets increased during the nine months ended March 31, 2021 primarily due to satisfaction of performance obligations for aviation, cargo and vehicle inspection customers in our Security division which have not yet been billed. The increase in contract liabilities was primarily due to receipt of upfront deposits from customers in our Security division.

Remaining Performance Obligations. Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations under an original contract with a term greater than one year which are fully or partially unsatisfied at the end of the period. As of March 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $322.8 million. We expect to recognize revenue on approximately 67% of the remaining performance obligations over the next 12 months, and the remainder is expected to be recognized thereafter. During the nine months ended March 31, 2021, we recognized revenue of $45.0 million from contract liabilities existing at the beginning of the period.

Practical Expedients. In cases where we are responsible for shipping after the customer has obtained control of the goods, we have elected to treat the shipping activities as fulfillment activities rather than as a separate performance obligation. Additionally, we have elected to capitalize the cost to obtain a contract only if the period of amortization would be longer than one year. We only give consideration to whether a customer agreement has a financing component if the period of time between transfer of goods and services and customer payment is greater than one year.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

Leases

9 Months Ended

Mar. 31, 2021

Leases

Leases

6. Leases

The components of operating lease expense were as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Operating lease cost	$	2,525	$	2,216	$	7,771	$	7,120
Variable lease cost		237		280		551		723
Short-term lease cost		350		258		745		649
	$	3,112	$	2,754	$	9,067	$	8,492

Supplemental disclosures related to operating leases were as follows (in thousands):


	Balance Sheet Category	June 30, 2020		March 31, 2021
Operating lease ROU assets, net	Other assets	$	27,936	$	23,856

Operating lease liabilities, current portion	Other accrued expenses and current liabilities	$	8,537	$	7,646
Operating lease liabilities, long-term	Other long-term liabilities		19,713		16,742
Total operating lease liabilities		$	28,250	$	24,388

Weighted average remaining lease term					4.2 years
Weighted average discount rate					4.2 %

Supplemental cash flow information related to operating leases was as follows (in thousands):


	Nine Months Ended March 31,
	2020		2021
Cash paid for operating lease liabilities	$	7,664	$	7,773
ROU assets obtained in exchange for new lease obligations		3,718		1,810

Maturities of operating lease liabilities at March 31, 2021 were as follows (in thousands):


	March 31, 2021
Less than one year	$	8,475
1 – 2 years		5,929
2 – 3 years		4,866
3 – 4 years		3,215
4 – 5 years		2,060
Thereafter		2,421
		26,966
Less: imputed interest		(2,578)
Total lease liabilities	$	24,388

Impairment, Restructuring and Other Charges

9 Months Ended

Mar. 31, 2021

Impairment, Restructuring and Other Charges

Impairment, Restructuring and Other Charges

7. Impairment, Restructuring and Other Charges

We endeavor to align our global capacity and infrastructure with demand by our customers as well as fully integrate acquisitions and thereby improve operational efficiency.

During the three months ended March 31, 2021, we recognized a total net benefit of ($0.3) million which included a net benefit of ($0.7) million for reimbursements from our insurance carriers for covered legal charges. We also incurred charges of $0.2 million for employee terminations and $0.2 million for facility closure and operational efficiency activities.

During the nine months ended March 31, 2021, we incurred a total net expense of $7.9 million which included $7.2 million for exit activities associated with an expired turnkey contract in Mexico. Such exit costs include $2.8 million for employee terminations, $1.1 million for facility closure and other exit costs, direct transaction costs of $2.7 million, and $0.6 million for right-of-use asset impairment for a leased facility. We also incurred costs of $1.6 million for other employee terminations and facility closure costs for operational efficiency activities and $0.3 million for acquisition-related activities. We also recognized a net benefit of ($1.2) million for reimbursements from our insurance carriers for covered legal charges.

During the three and nine months ended March 31, 2020, we abandoned a non-core product line in our Healthcare division which resulted in the write-off of assets, including intangible and fixed assets, totaling $3.3 million as we determined that these assets had no value and were permanently impaired. In addition, we continued to recover certain legal costs related to class action litigation and government investigations through insurance reimbursement. We also incurred additional legal fees related to these matters as well as restructuring charges by the divisions as noted in the tables below. This resulted in a net expense of $4.5 million and $1.5 million during the three and nine months ended March 31, 2020, respectively.

The following tables summarize impairment, restructuring and other charges (benefit), net for the periods set forth below (in thousands):


	Three Months Ended March 31, 2020
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Impairment charges	$	—	$	3,258	$	—	$	—	$	3,258
Acquisition-related costs		107		—		41		155		303
Employee termination costs		328		466		259		50		1,103
Facility closures/consolidation		30		—		—		—		30
Legal costs (recoveries), net		—		—		—		(146)		(146)
Total expensed	$	465	$	3,724	$	300	$	59	$	4,548


	Three Months Ended March 31, 2021
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Acquisition-related costs	$	22	$	—	$	—	$	—	$	22
Employee termination costs		213		—		—		—		213
Facility closures/consolidation costs (benefit)		166		—		—		—		166
Legal costs (recoveries), net		—		—		—		(686)		(686)
Total expensed (benefit), net	$	401	$	—	$	—	$	(686)	$	(285)


	Nine Months Ended March 31, 2020
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Impairment charges	$	—	$	3,258	$	—	$	—	$	3,258
Acquisition-related costs		107		—		41		155		303
Employee termination costs		734		466		277		119		1,596
Facility closures/consolidation		30		—		—		—		30
Legal costs (recoveries), net		—		—		—		(3,667)		(3,667)
Total expensed	$	871	$	3,724	$	318	$	(3,393)	$	1,520


	Nine Months Ended March 31, 2021
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Impairment charges	$	552	$	—	$	—	$	—	$	552
Acquisition-related costs		250		27		—		—		277
Employee termination costs		4,010		—		146		—		4,156
Mexico transaction costs		2,691		—		—		—		2,691
Facility closures/consolidation costs		1,420		—		—		—		1,420
Legal costs (recoveries), net		—		—		—		(1,184)		(1,184)
Total expensed (benefit), net	$	8,923	$	27	$	146	$	(1,184)	$	7,912

The accrued liability for restructuring and other charges is included in other accrued expenses and current liabilities in the condensed consolidated balance sheet. The changes in the accrued liability for restructuring and other charges for the nine-month period ended March 31, 2021 were as follows (in thousands):



			Facility
	Employee		Closure/
	Termination		Consolidation		Acquisition-		Legal Costs and
	Costs		Cost		Related Costs		Settlements		Total
Balance as of June 30, 2020	$	545	$	201	$	—	$	1,882	$	2,628
Restructuring and other charges (benefit), net		4,156		1,420		277		(1,184)		4,669
Payments, adjustments and reimbursements, net		(4,570)		(1,501)		(277)		748		(5,600)
Balance as of March 31, 2021	$	131	$	120	$	—	$	1,446	$	1,697

Borrowings

9 Months Ended

Mar. 31, 2021

Borrowings

Borrowings

8. Borrowings

Revolving Credit Facility

We have a revolving credit facility with an aggregate committed amount of up to $535 million which matures in April 2024. The credit facility includes a $300 million sub-limit for letters of credit. Under certain circumstances, we have the ability to increase the facility by the greater of $250 million or such amount as would not cause our secured leverage ratio to exceed a specified level. Borrowings under this facility bear interest at LIBOR plus a margin of 1.0% as of March 31, 2021 (which margin can range from 1.0% to 1.75% based on our consolidated net leverage ratio as defined in the credit facility). The LIBOR index is expected to be discontinued by the end of calendar year 2021. The terms of our credit facility allow for replacement if that occurs. Letters of credit reduce the amount available to borrow under the credit facility by their face value amount. The unused portion of the facility bears a commitment fee of 0.10% as of March 31, 2021 (which fee can range from 0.10% to 0.25% based on our consolidated net leverage ratio as defined in the credit facility). Our borrowings under the credit agreement are guaranteed by certain of our U.S.-based subsidiaries and are secured by substantially all of our assets and substantially all the assets of certain of our subsidiaries. The credit facility contains various representations and warranties, affirmative, negative and financial covenants and events of default. As of March 31, 2021, there were no borrowings outstanding under the revolving credit facility and $66.7 million outstanding under the letters of credit sub facility. The amount available to borrow under the credit facility as of March 31, 2021 was $468.3 million. Loan amounts under the revolving credit facility may be borrowed, repaid and re-borrowed during the term. The principal amount of each revolving loan is due and payable in full on the maturity date. We have the right to repay each revolving loan in whole or in part from time to time without penalty. It is our practice to routinely borrow and repay several times per year under this revolving facility and therefore, borrowings under the credit facility are included in current liabilities. As of March 31, 2021, we were in compliance with all covenants under this credit facility.

1.25% Convertible Senior Notes (“Notes”) Due 2022

In February 2017, we issued $287.5 million of the Notes in a private offering. The Notes are governed by an indenture dated February 22, 2017. The maturity for the payment of principal is September 1, 2022. The Notes bear interest at the rate of 1.25% and are payable in cash semiannually in arrears on each March 1 and September 1.

Pursuant to ASC 470-20, we allocated the $287.5 million gross proceeds of the Notes between liability and equity components. The initial $242.4 million liability component was determined based on the fair value of similar debt instruments excluding the conversion feature for similar terms and priced on the same day the Notes were issued. The initial $45.1 million equity component represents the debt discount and was calculated as the difference between the fair value of the debt and the gross proceeds of the Notes. Issuance costs of $7.7 million were allocated between debt ($6.5 million) and equity ($1.2 million) components with the portion allocated to the debt presented as an offset against long-term debt in the consolidated balance sheet. The debt discount is amortized over the remaining contractual term to maturity of the Notes using an effective interest rate of 4.5%. The debt issuance cost is amortized on a straight-line basis, which approximates the effective interest method, over the life of the Notes. Total interest expense recognized for the three and nine months ended March 31, 2021 related to the Notes was $3.3 million and $10.0 million, respectively, which consisted of $0.9 million and $2.7 million of contractual interest expense, $2.2 million and $6.4 million of debt discount amortization and $0.3 million and $0.9 million of amortization of debt issuance costs. For the three and nine months ended March 31, 2020, total interest expense was $3.3 million and $9.7 million, respectively, which consisted of $0.9 million and $2.7 million of contractual interest expense, $2.1 million and $6.1 million of debt discount amortization and $0.3 million and $0.9 million of amortization of debt issuance costs.

Other Borrowings

Several of our foreign subsidiaries maintain bank lines-of-credit, denominated in local currencies and U.S. dollars, primarily for the issuance of letters-of-credit. As of March 31, 2021, $63.0 million was outstanding under these letter-of-credit facilities. As of March 31, 2021, the total amount available under these credit facilities was $12.9 million.

Long-term debt consisted of the following (in thousands):


	June 30,		March 31,
	2020		2021
1.25% convertible notes due September 1, 2022:
Principal amount	$	287,500	$	287,500
Unamortized discount		(19,075)		(12,680)
Unamortized debt issuance costs		(2,547)		(1,665)
		265,878		273,155
Other long-term debt		2,120		1,767
		267,998		274,922
Less current portion of long-term debt		(926)		(925)
Long-term portion of debt	$	267,072	$	273,997

Stockholders' Equity

9 Months Ended

Mar. 31, 2021

Stockholders' Equity

Stockholders' Equity

9. Stockholders’ Equity

Stock-based Compensation

As of March 31, 2021, we maintained the Amended and Restated 2012 Incentive Award Plan (the "2012 Plan ") and the Amended and Restated 2006 Equity Participation Plan ("2006 Plan") as stock-based employee compensation plans. No further grants may be made under the 2006 Plan. The 2012 Plan and the 2006 Plan are collectively referred to as the "OSI Plans."

We recorded stock-based compensation expense in the consolidated statements of operations as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Cost of goods sold	$	189	$	199	$	517	$	571
Selling, general and administrative		5,520		7,223		17,153		18,391
Research and development		128		143		427		424
Stock-based compensation expense	$	5,837	$	7,565	$	18,097	$	19,386

As of March 31, 2021, total unrecognized compensation cost related to share-based compensation grants under the OSI Plans were estimated at $0.5 million for stock options and $20.7 million for restricted stock units (“RSUs”). We expect to recognize these costs over a weighted average period of 2.1 years with respect to the stock options and 1.9 years for grants of RSUs.

The following summarizes stock option activity during the nine months ended March 31, 2021:


		Weighted
		Average		Weighted-Average	Aggregate
	Number of	Exercise		Remaining Contractual	Intrinsic Value
	Options	Price		Term	(in thousands)
Outstanding at June 30, 2020	326,304	$	44.41
Granted	22,171		82.17
Exercised	(87,235)		34.44
Expired or forfeited	(2,710)		78.71
Outstanding at March 31, 2021	258,530		50.65	2.8 years	$	11,818
Exercisable at March 31, 2021	222,512		45.03	1.8 years		11,387

The following summarizes RSU award activity during the nine months ended March 31, 2021:


		Weighted-
		Average
	Shares	Fair Value
Nonvested at June 30, 2020	423,590	$	88.68
Granted	337,778		80.32
Vested	(310,939)		86.20
Forfeited	(8,244)		84.47
Nonvested at March 31, 2021	442,185	$	84.12

In December 2020, our shareholders authorized an increase of 1.65 million shares for the 2012 Plan resulting in a maximum pool of 7.1 million shares. As of March 31, 2021, there were approximately 2.1 million shares available for grant under the 2012 Plan. Under the terms of the 2012 Plan, RSUs and restricted stock granted from the pool of shares available for grant reduce the pool by 1.87 shares for each award granted. RSUs and restricted stock forfeited and returned to the pool of shares available for grant increase the pool by 1.87 shares for each award forfeited.

We granted 81,621 and 136,242 performance-based RSUs during the nine months ended March 31, 2020 and 2021, respectively. These performance based RSU awards are contingent on the achievement of certain performance metrics. The payout related to these awards can range from zero to 400% of the original number of shares or units awarded. Compensation cost associated with these performance based RSUs are recognized based on the estimated number of shares that we ultimately expect will vest. If the estimated number of shares to vest is revised in the future, then stock based compensation expense will be adjusted accordingly.

Stock Repurchase Program

In April 2020, the Board of Directors authorized a share repurchase program of up to 1,000,000 shares of common stock. In August 2020, the Board of Directors increased the maximum number of shares to 3,000,000 shares authorized under the stock repurchase program. This program does not expire unless our Board of Directors acts to terminate the program. The timing and actual numbers of shares purchased depends on a variety of factors, including stock price, general business and market conditions and other investment opportunities. Repurchases may be made from time to time under the program through open-market purchases or privately-negotiated transactions at our discretion. Upon repurchase, the shares are restored to the status of authorized but unissued shares and we record them in our consolidated financial statements as a reduction in the number of shares of common stock issued and outstanding.

During the nine months ended March 31, 2021, we repurchased 322,588 shares of our common stock.

Dividends

We have not paid any cash dividends since the consummation of our initial public offering in 1997 and we do not currently intend to pay any cash dividends in the foreseeable future. Our Board of Directors will determine the payment of future cash dividends, if any. Certain of our current bank credit facilities restrict the payment of cash dividends and future borrowings may contain similar restrictions.

Commitments and Contingencies

9 Months Ended

Mar. 31, 2021

Commitments and Contingencies

Commitments and Contingencies

10. Commitments and Contingencies

Acquisition-Related Contingent Obligations

Under the terms and conditions of the purchase agreements associated with certain acquisitions, we may be obligated to make additional payments based on the achievement of certain sales or profitability milestones through the acquired operations. For agreements that contain contingent consideration caps, the remaining maximum amount of such potential future payments is $30.2 million as of March 31, 2021.

We account for such contingent payments for acquisitions which occurred through the end of fiscal year 2009 as additions to the purchase price of the acquired business. We made contingent payments relating to such acquisitions of $0.2 million and $1.5 million, respectively, during the three and nine months ended March 31, 2020 and $0.2 million and $0.9 million, respectively, during the three and nine months ended March 31, 2021.

For acquisitions completed after fiscal 2009, pursuant to Financial Accounting Standard 141R, which was codified into ASC 805, the estimated fair value of these obligations is recorded as a liability at the time of the acquisition with subsequent revisions recorded in Selling, general and administrative expense in the consolidated financial statements. The estimated fair value measurements of contingent earnout obligations are primarily based on unobservable inputs, which may include projected revenues, gross margins, operating income and the estimated probability of achieving the earnouts.

These projections and probabilities are used to estimate future contingent earnout payments, which are discounted back to present value to compute contingent earnout liabilities. The following table provides a roll-forward from June 30, 2020 to March 31, 2021 of the contingent consideration liability, which is included in other accrued expenses and current liabilities and other long-term liabilities in our consolidated balance sheets (in thousands):


Beginning fair value, June 30, 2020	$	13,867
Addition of contingent earnout obligations		7,304
Foreign currency translation adjustment		523
Changes in fair value for contingent earnout obligations		(2,357)
Payments on contingent earnout obligations		—
Ending fair value, March 31, 2021	$	19,337

Environmental Contingencies

We are subject to various environmental laws. Our practice is to conduct environmental investigations at our manufacturing facilities in North America, Asia-Pacific and Europe, and, to the extent practicable, on all new properties in order to identify, as of the date of such investigation, potential areas of environmental concern related to past and present activities or from nearby operations. In certain cases, we have conducted further environmental assessments consisting of soil and groundwater testing and other investigations deemed appropriate by independent environmental consultants.

We continue to investigate contamination of the soil and groundwater beneath the Hawthorne, California facility that resulted from unspecified on-and off-site releases occurring prior to our occupancy. We believe the releases are of a historical nature and not uncommon to the region in general. We continue to take voluntary actions, in cooperation with the local governing agency, to fully investigate the site and develop appropriate remedial actions.

We have not accrued for loss contingencies relating to the Hawthorne facility or any other environmental matters because we believe that, although unfavorable outcomes are possible, they are not considered by our management to be probable and reasonably estimable. If one or more of these environmental matters are resolved in a manner adverse to us, the impact on our business, financial condition, results of operations and cash flow could be material.

Indemnifications and Certain Employment-Related Contingencies

In the normal course of business, we have agreed to indemnify certain parties with respect to certain matters. We have agreed to hold certain parties harmless against losses arising from breaches of representations, warranties or covenants, or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered into indemnification agreements with our directors and certain of our officers. It is not possible to determine the maximum potential liability amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. We have not recorded any liability for costs related to contingent indemnification obligations as of March 31, 2021.

On December 31, 2017, we and Deepak Chopra, our Chief Executive Officer, entered into an amendment to Mr. Chopra's employment agreement that, among other things, provides for a $13.5 million bonus payment to Mr. Chopra on or within 45 days of January 1, 2024 contingent upon Mr. Chopra's continued employment with us through that date, subject to accelerated payout terms in the event of Mr. Chopra's death or disability. The bonus is recorded in the financial statements over the remaining term of the employment agreement and is included in other long-term liabilities.

Product Warranties

We offer our customers warranties on many of the products that we sell. These warranties typically provide for repairs and maintenance of the products if problems arise during a specified time period after original shipment. Concurrent with the sale of products, we record a provision for estimated warranty expenses with a corresponding increase in cost of goods sold. We periodically adjust this provision based on historical experience and anticipated expenses. We charge actual expenses of repairs under warranty, including parts and labor, to this provision when incurred. The current obligation for warranty provision is included in other accrued expenses and current liabilities and the noncurrent portion is included in other long-term liabilities in the consolidated balance sheets.

The following table presents changes in warranty provisions (in thousands):


	Nine Months Ended March 31,
	2020		2021
Balance at beginning of period	$	21,724	$	20,825
Additions and adjustments		6,105		3,759
Reductions for warranty repair costs		(6,557)		(4,975)
Balance at end of period	$	21,272	$	19,609

Legal Proceedings

In December 2017, a short seller released a report regarding our compliance with the FCPA. Following that report, we and certain of our executive officers have been named as defendants in several lawsuits in the District Court that were filed in December 2017 and February 2018. Each of the complaints closely tracks the allegations set forth in the short seller's report. All of the actions, which were consolidated by the District Court in March 2018 in an action captioned Arkansas Teacher Retirement System et al. v. OSI Systems, Inc. et al., No. 17 cv 08841, allege violations of Sections 10(b) and 20(a) of the Exchange Act, relating to certain of our public statements and filings with the SEC, and seek damages and other relief based upon the allegations in the complaints. In April 2018 and March 2019, two shareholder derivative complaints were filed purportedly on behalf of the Company against certain members of our Board of Directors (as individual defendants), a former member of our Board of Directors, and a member of management. The derivative actions, which were consolidated by the District Court in November 2019 in an action captioned Kocen and Riley v. Chopra, et al. No. 18 CV 03371, allege, among other things, breach of fiduciary duties relating to the allegations contained in the above-mentioned short seller report and seek damages, restitution, injunctive relief, attorneys' and experts' fees, costs, expenses, and other unspecified relief. We believe that the actions are without merit and intend to defend them vigorously, and we expect to incur costs associated with defending against these actions. At this early stage of the litigations, the ultimate outcomes are uncertain and we cannot reasonably predict the timing or outcomes, or estimate the amount of loss, if any, or their effect, if any, on our financial statements.

The SEC and the DOJ are conducting an investigation of trading in our securities and have each subpoenaed information regarding trading by executives, directors, and employees, as well as our operations and disclosures in and around the time of certain trades. With respect to these trading related matters, in fiscal year 2018, we took action with respect to a senior level employee. At this time, we are unable to predict what, if any, action may be taken by the DOJ or SEC as a result of these trading related investigations, or any penalties or remedial measures these agencies may seek. We place a high priority on compliance with our anticorruption and securities trading policies and are cooperating with each of the government investigations.

We are involved in various other claims and legal proceedings arising in the ordinary course of business. In our opinion after consultation with legal counsel, the ultimate disposition of such proceedings is not likely to have a material adverse effect on our business, financial condition, results of operations or cash flows. We have not accrued for loss contingencies relating to any such matters because we believe that, although unfavorable outcomes in the proceedings are possible, they are not considered by management to be probable and reasonably estimable. If one or more of these matters are resolved in a manner adverse to our company, the impact on our business, financial condition, results of operations and cash flows could be material.

Segment Information

9 Months Ended

Mar. 31, 2021

Segment Information

Segment Information

12. Segment Information

We have determined that we operate in three identifiable industry segments: (a) security and inspection systems (Security division), (b) medical monitoring and diagnostic cardiology systems (Healthcare division) and (c) optoelectronic devices and manufacturing (Optoelectronics and Manufacturing division). We also have a corporate segment (Corporate) that includes executive compensation and certain other general and administrative expenses; expenses related to stock issuances and legal, audit and other professional service fees not allocated to industry segments. Both the Security and Healthcare divisions comprise primarily end-product businesses, whereas the Optoelectronics and Manufacturing division primarily supplies components and subsystems to external OEM customers, as well as to the Security and Healthcare divisions. Sales between divisions are at transfer prices that approximate market values. All other accounting policies of the segments are the same as described in Note 1, Basis of Presentation.

The following tables present our results of operations and identifiable assets by industry segment (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Revenues (1) —by Segment:
Security division	$	187,076	$	151,409	$	578,477	$	431,420
Healthcare division		45,662		54,023		127,862		160,421
Optoelectronics and Manufacturing division, including intersegment revenues		70,240		90,278		216,684		257,713
Intersegment revenues elimination		(10,095)		(11,923)		(33,946)		(34,850)
Total	$	292,883	$	283,787	$	889,077	$	814,704

Income (loss) from operations —by Segment:
Security division	$	24,525	$	23,969	$	73,405	$	52,651
Healthcare division		1,682		7,333		5,793		25,640
Optoelectronics and Manufacturing division		7,309		10,484		25,096		29,638
Corporate		(10,161)		(9,078)		(23,578)		(25,895)
Intersegment eliminations		270		(242)		715		(517)
Total	$	23,625	$	32,466	$	81,431	$	81,517


	June 30,		March 31,
	2020		2021
Assets (2) —by Segment:
Security division	$	758,054	$	751,008
Healthcare division		208,857		211,226
Optoelectronics and Manufacturing division		232,408		275,976
Corporate		109,178		126,157
Eliminations (3)		(39,956)		(38,407)
Total	$	1,268,541	$	1,325,960

(1)For each of the three and nine month periods ended March 31, 2020 and March 31, 2021, no customer accounted for greater than 10% of total net revenues.

(2)One customer accounted for 13% of accounts receivable, net as of June 30, 2020. A different customer accounted for 10% of accounts receivable, net as of March 31, 2021.

(3)Eliminations in assets reflect the amount of inter-segment profits in inventory and inter-segment ROU assets under ASC 842 as of the balance sheet date. Such inter-segment profit will be realized when inventory is shipped to the external customers of the Security and Healthcare divisions.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 21
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Basis of Presentation (Policies)

9 Months Ended

Mar. 31, 2021

Basis of Presentation

Basis of Presentation

Use of Estimates

Use of Estimates

Earnings Per Share Computations

Earnings Per Share Computations

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Net income available to common stockholders	$	19,558	$	18,773	$	61,287	$	48,155

Weighted average shares outstanding—basic		18,182		17,969		18,251		17,981
Dilutive effect of equity awards		331		329		442		297
Weighted average shares outstanding—diluted		18,513		18,298		18,693		18,278

Basic earnings per share	$	1.08	$	1.04	$	3.36	$	2.68
Diluted earnings per share	$	1.06	$	1.03	$	3.28	$	2.63
Shares excluded from diluted earnings per share due to their anti-dilutive effect		145		51		100		64

Cash and Cash Equivalents

Cash and Cash Equivalents

We consider all highly liquid investments with maturities of three months or less as of the acquisition date to be cash equivalents.

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The fair values of our financial assets and liabilities are categorized as follows (in thousands):


	June 30, 2020								March 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets :
Insurance company contracts	$	—	$	37,155	$	—	$	37,155	$	—	$	45,015	$	—	$	45,015
Liabilities:
Contingent consideration	$	—	$	—	$	13,867	$	13,867	$	—	$	—	$	19,337	$	19,337

Derivative Instruments and Hedging Activity

Derivative Instruments and Hedging Activity

Recently Adopted Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

Basis of Presentation (Tables)

9 Months Ended

Mar. 31, 2021

Basis of Presentation

Schedule of computation of basic and diluted earnings per share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Net income available to common stockholders	$	19,558	$	18,773	$	61,287	$	48,155

Weighted average shares outstanding—basic		18,182		17,969		18,251		17,981
Dilutive effect of equity awards		331		329		442		297
Weighted average shares outstanding—diluted		18,513		18,298		18,693		18,278

Basic earnings per share	$	1.08	$	1.04	$	3.36	$	2.68
Diluted earnings per share	$	1.06	$	1.03	$	3.28	$	2.63
Shares excluded from diluted earnings per share due to their anti-dilutive effect		145		51		100		64

Schedule of fair values of financial assets and liabilities

The fair values of our financial assets and liabilities are categorized as follows (in thousands):


	June 30, 2020								March 31, 2021
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets :
Insurance company contracts	$	—	$	37,155	$	—	$	37,155	$	—	$	45,015	$	—	$	45,015
Liabilities:
Contingent consideration	$	—	$	—	$	13,867	$	13,867	$	—	$	—	$	19,337	$	19,337

Balance Sheet Details (Tables)

9 Months Ended

Mar. 31, 2021

Balance Sheet Details

Schedule of selected balance sheet accounts

The following tables provide details of selected balance sheet accounts (in thousands):


	June 30,		March 31,
Accounts receivable, net	2020		2021
Accounts receivable	$	287,488	$	281,970
Less allowance for doubtful accounts		(17,648)		(23,376)
Total	$	269,840	$	258,594


	June 30,		March 31,
Inventories	2020		2021
Raw materials	$	132,797	$	144,043
Work-in-process		50,023		68,853
Finished goods		58,406		70,627
Total	$	241,226	$	283,523



	June 30,		March 31,
Property and equipment, net	2020		2021
Land	$	16,516	$	16,345
Buildings, civil works and improvements		57,709		57,645
Leasehold improvements		9,052		8,654
Equipment, furniture and fixtures		149,310		156,006
Computer software		18,217		23,052
Computer software implementation in process		11,817		10,615
Construction in process		3,598		4,459
Total		266,219		276,776
Less accumulated depreciation and amortization		(138,283)		(151,299)
Property and equipment, net	$	127,936	$	125,477

Goodwill and Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets

Schedule of changes in the carrying value of goodwill by segment

The changes in the carrying value of goodwill by segment for the nine-month period ended March 31, 2021 were as follows (in thousands):


					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2020	$	203,627	$	39,983	$	67,017	$	310,627
Goodwill acquired or adjusted during the period		1,905		3,244		—		5,149
Foreign currency translation adjustment		264		333		2,838		3,435
Balance as of March 31, 2021	$	205,796	$	43,560	$	69,855	$	319,211

Schedule of intangible assets

Intangible assets consisted of the following (in thousands):


		June 30, 2020						March 31, 2021
	Weighted	Gross						Gross
	Average	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Lives	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	8 years	$	41,332	$	(16,295)	$	25,037	$	45,421	$	(14,817)	$	30,604
Patents	19 years		9,962		(2,584)		7,378		9,890		(2,790)		7,100
Developed technology	10 years		55,719		(19,556)		36,163		60,923		(24,352)		36,571
Customer relationships/backlog	7 years		64,128		(32,110)		32,018		62,577		(35,929)		26,648
Total amortizable assets			171,141		(70,545)		100,596		178,811		(77,888)		100,923
Non-amortizable assets:
In-process research and development			533		—		533		533		—		533
Trademarks			27,150		—		27,150		28,602		—		28,602
Total intangible assets		$	198,824	$	(70,545)	$	128,279	$	207,946	$	(77,888)	$	130,058

Schedule of estimated future amortization expense for intangible assets

At March 31, 2021, the estimated future amortization expense for intangible assets was as follows (in thousands):


2021 (remaining 3 months)	$	4,660
2022		17,152
2023		17,377
2024		16,705
2025		13,986
Thereafter		31,043
Total	$	100,923

Leases (Tables)

9 Months Ended

Mar. 31, 2021

Leases

Schedule of components of operating lease expense

The components of operating lease expense were as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Operating lease cost	$	2,525	$	2,216	$	7,771	$	7,120
Variable lease cost		237		280		551		723
Short-term lease cost		350		258		745		649
	$	3,112	$	2,754	$	9,067	$	8,492

Schedule of supplemental balance sheet assets and liabilities related to operating leases

Supplemental disclosures related to operating leases were as follows (in thousands):


	Balance Sheet Category	June 30, 2020		March 31, 2021
Operating lease ROU assets, net	Other assets	$	27,936	$	23,856

Operating lease liabilities, current portion	Other accrued expenses and current liabilities	$	8,537	$	7,646
Operating lease liabilities, long-term	Other long-term liabilities		19,713		16,742
Total operating lease liabilities		$	28,250	$	24,388

Weighted average remaining lease term					4.2 years
Weighted average discount rate					4.2 %

Schedule of supplemental cash flow information related to operating leases

Supplemental cash flow information related to operating leases was as follows (in thousands):


	Nine Months Ended March 31,
	2020		2021
Cash paid for operating lease liabilities	$	7,664	$	7,773
ROU assets obtained in exchange for new lease obligations		3,718		1,810

Schedule of maturities of operating lease liabilities

Maturities of operating lease liabilities at March 31, 2021 were as follows (in thousands):


	March 31, 2021
Less than one year	$	8,475
1 – 2 years		5,929
2 – 3 years		4,866
3 – 4 years		3,215
4 – 5 years		2,060
Thereafter		2,421
		26,966
Less: imputed interest		(2,578)
Total lease liabilities	$	24,388

Impairment, Restructuring and Other Charges (Tables)

9 Months Ended

Mar. 31, 2021

Impairment, Restructuring and Other Charges

Summary of impairment, restructuring and other charges (benefit), net


	Three Months Ended March 31, 2020
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Impairment charges	$	—	$	3,258	$	—	$	—	$	3,258
Acquisition-related costs		107		—		41		155		303
Employee termination costs		328		466		259		50		1,103
Facility closures/consolidation		30		—		—		—		30
Legal costs (recoveries), net		—		—		—		(146)		(146)
Total expensed	$	465	$	3,724	$	300	$	59	$	4,548


	Three Months Ended March 31, 2021
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Acquisition-related costs	$	22	$	—	$	—	$	—	$	22
Employee termination costs		213		—		—		—		213
Facility closures/consolidation costs (benefit)		166		—		—		—		166
Legal costs (recoveries), net		—		—		—		(686)		(686)
Total expensed (benefit), net	$	401	$	—	$	—	$	(686)	$	(285)


	Nine Months Ended March 31, 2020
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Impairment charges	$	—	$	3,258	$	—	$	—	$	3,258
Acquisition-related costs		107		—		41		155		303
Employee termination costs		734		466		277		119		1,596
Facility closures/consolidation		30		—		—		—		30
Legal costs (recoveries), net		—		—		—		(3,667)		(3,667)
Total expensed	$	871	$	3,724	$	318	$	(3,393)	$	1,520


	Nine Months Ended March 31, 2021
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Impairment charges	$	552	$	—	$	—	$	—	$	552
Acquisition-related costs		250		27		—		—		277
Employee termination costs		4,010		—		146		—		4,156
Mexico transaction costs		2,691		—		—		—		2,691
Facility closures/consolidation costs		1,420		—		—		—		1,420
Legal costs (recoveries), net		—		—		—		(1,184)		(1,184)
Total expensed (benefit), net	$	8,923	$	27	$	146	$	(1,184)	$	7,912

Summary of changes in the accrued liability for restructuring and other charges



			Facility
	Employee		Closure/
	Termination		Consolidation		Acquisition-		Legal Costs and
	Costs		Cost		Related Costs		Settlements		Total
Balance as of June 30, 2020	$	545	$	201	$	—	$	1,882	$	2,628
Restructuring and other charges (benefit), net		4,156		1,420		277		(1,184)		4,669
Payments, adjustments and reimbursements, net		(4,570)		(1,501)		(277)		748		(5,600)
Balance as of March 31, 2021	$	131	$	120	$	—	$	1,446	$	1,697

Stockholders' Equity (Tables)

9 Months Ended

Mar. 31, 2021

Stockholders' Equity

Schedule of stock-based compensation expense in the consolidated statements of operations

We recorded stock-based compensation expense in the consolidated statements of operations as follows (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Cost of goods sold	$	189	$	199	$	517	$	571
Selling, general and administrative		5,520		7,223		17,153		18,391
Research and development		128		143		427		424
Stock-based compensation expense	$	5,837	$	7,565	$	18,097	$	19,386

Summary of stock option activity


		Weighted
		Average		Weighted-Average	Aggregate
	Number of	Exercise		Remaining Contractual	Intrinsic Value
	Options	Price		Term	(in thousands)
Outstanding at June 30, 2020	326,304	$	44.41
Granted	22,171		82.17
Exercised	(87,235)		34.44
Expired or forfeited	(2,710)		78.71
Outstanding at March 31, 2021	258,530		50.65	2.8 years	$	11,818
Exercisable at March 31, 2021	222,512		45.03	1.8 years		11,387

Summary of RSU award activity


		Weighted-
		Average
	Shares	Fair Value
Nonvested at June 30, 2020	423,590	$	88.68
Granted	337,778		80.32
Vested	(310,939)		86.20
Forfeited	(8,244)		84.47
Nonvested at March 31, 2021	442,185	$	84.12

Segment Information (Tables)

9 Months Ended

Mar. 31, 2021

Segment Information

Schedule of results of operations and identifiable assets by industry segment


	Three Months Ended March 31,				Nine Months Ended March 31,
	2020		2021		2020		2021
Revenues (1) —by Segment:
Security division	$	187,076	$	151,409	$	578,477	$	431,420
Healthcare division		45,662		54,023		127,862		160,421
Optoelectronics and Manufacturing division, including intersegment revenues		70,240		90,278		216,684		257,713
Intersegment revenues elimination		(10,095)		(11,923)		(33,946)		(34,850)
Total	$	292,883	$	283,787	$	889,077	$	814,704

Income (loss) from operations —by Segment:
Security division	$	24,525	$	23,969	$	73,405	$	52,651
Healthcare division		1,682		7,333		5,793		25,640
Optoelectronics and Manufacturing division		7,309		10,484		25,096		29,638
Corporate		(10,161)		(9,078)		(23,578)		(25,895)
Intersegment eliminations		270		(242)		715		(517)
Total	$	23,625	$	32,466	$	81,431	$	81,517


	June 30,		March 31,
	2020		2021
Assets (2) —by Segment:
Security division	$	758,054	$	751,008
Healthcare division		208,857		211,226
Optoelectronics and Manufacturing division		232,408		275,976
Corporate		109,178		126,157
Eliminations (3)		(39,956)		(38,407)
Total	$	1,268,541	$	1,325,960

(1)For each of the three and nine month periods ended March 31, 2020 and March 31, 2021, no customer accounted for greater than 10% of total net revenues.

(2)One customer accounted for 13% of accounts receivable, net as of June 30, 2020. A different customer accounted for 10% of accounts receivable, net as of March 31, 2021.

Basis of Presentation - Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Feb. 28, 2017
Computation of basic and diluted earnings per share
Net income available to common stockholders	$ 18,773	$ 19,558	$ 48,155	$ 61,287
Weighted average shares outstanding-basic	17,969	18,182	17,981	18,251
Dilutive effect of equity awards	329	331	297	442
Dilutive effect of the Notes	0	0	0	0
Weighted average shares outstanding-diluted	18,298	18,513	18,278	18,693
Basic earnings per share	$ 1.04	$ 1.08	$ 2.68	$ 3.36
Diluted earnings per share	$ 1.03	$ 1.06	$ 2.63	$ 3.28
Shares excluded from diluted earnings per share due to their anti-dilutive effect	51	145	64	100
1.25% Convertible Senior Notes Due 2022
Per Share Computations
Interest rate (as a percentage)	1.25%		1.25%		1.25%
Computation of basic and diluted earnings per share
Conversion price	$ 107.46		$ 107.46

Balance Sheet Details (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Balance Sheet Details (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Accounts receivable, net
Accounts receivable	$ 281,970		$ 281,970		$ 287,488
Less allowance for doubtful accounts	(23,376)		(23,376)		(17,648)
Total	258,594		258,594		269,840
Inventories
Raw materials	144,043		144,043		132,797
Work-in-process	68,853		68,853		50,023
Finished goods	70,627		70,627		58,406
Total	283,523		283,523		241,226
Property and equipment, net
Property and equipment, gross	276,776		276,776		266,219
Less accumulated depreciation and amortization	(151,299)		(151,299)		(138,283)
Property and equipment, net	125,477		125,477		127,936
Depreciation and amortization expense for property and equipment	5,500	$ 5,400	16,300	$ 15,900
Land
Property and equipment, net
Property and equipment, gross	16,345		16,345		16,516
Buildings, civil works and improvements
Property and equipment, net
Property and equipment, gross	57,645		57,645		57,709
Leasehold improvements
Property and equipment, net
Property and equipment, gross	8,654		8,654		9,052
Equipment, furniture and fixtures
Property and equipment, net
Property and equipment, gross	156,006		156,006		149,310
Computer software
Property and equipment, net
Property and equipment, gross	23,052		23,052		18,217
Computer software implementation in process
Property and equipment, net
Property and equipment, gross	10,615		10,615		11,817
Construction in process
Property and equipment, net
Property and equipment, gross	$ 4,459		$ 4,459		$ 3,598

Goodwill and Intangible Assets - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Amortizable assets:
Gross Carrying Value	$ 178,811		$ 178,811		$ 171,141
Accumulated Amortization	(77,888)		(77,888)		(70,545)
Total	100,923		100,923		100,596
Total intangible assets
Gross Carrying Value	207,946		207,946		198,824
Intangible assets, net	130,058		130,058		128,279
Amortization expense	4,800	$ 4,900	15,100	$ 14,300
In-process research and development
Non-amortizable assets:
Gross Carrying Value	533		533		533
Trademarks
Non-amortizable assets:
Gross Carrying Value	28,602		$ 28,602		27,150
Software development costs
Intangible assets
Weighted Average Lives (in Years)			8 years
Amortizable assets:
Gross Carrying Value	45,421		$ 45,421		41,332
Accumulated Amortization	(14,817)		(14,817)		(16,295)
Total	30,604		$ 30,604		25,037
Patents
Intangible assets
Weighted Average Lives (in Years)			19 years
Amortizable assets:
Gross Carrying Value	9,890		$ 9,890		9,962
Accumulated Amortization	(2,790)		(2,790)		(2,584)
Total	7,100		$ 7,100		7,378
Developed technology
Intangible assets
Weighted Average Lives (in Years)			10 years
Amortizable assets:
Gross Carrying Value	60,923		$ 60,923		55,719
Accumulated Amortization	(24,352)		(24,352)		(19,556)
Total	36,571		$ 36,571		36,163
Customer relationships/backlog
Intangible assets
Weighted Average Lives (in Years)			7 years
Amortizable assets:
Gross Carrying Value	62,577		$ 62,577		64,128
Accumulated Amortization	(35,929)		(35,929)		(32,110)
Total	$ 26,648		$ 26,648		$ 32,018

Contract Assets and Liabilities (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Contract Assets
Unbilled revenue	$ 46,866	$ 43,011
Change in unbilled revenue	$ 3,855
Percentage of change in unbilled revenue	9.00%
Contract Liabilities
Advances from customers	$ 48,132	28,155
Deferred revenue - current	37,075	32,863
Deferred revenue - long-term	13,470	$ 13,214
Change in advances from customers	$ 19,977
Percentage of change in advances from customers	71.00%
Change in deferred revenue - current	$ 4,212
Percentage of change in deferred revenue - current	13.00%
Change in deferred revenue - long-term	$ 256
Percentage of change in deferred revenue - long-term	2.00%
Remaining Performance Obligations
Revenue remaining performance obligation	$ 322,800
Remaining performance obligation expected percentage recognized	67.00%
Recognized revenue from contract liabilities	$ 45,000
Revenue, Practical Expedient, Incremental Cost of Obtaining Contract [true false]	true
Revenue, Practical Expedient, Financing Component [true false]	true
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01
Remaining Performance Obligations
Remaining performance obligation expected timing of satisfaction period	12 months

Leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Operating lease expense
Operating lease cost	$ 2,216	$ 2,525	$ 7,120	$ 7,771
Variable lease cost	280	237	723	551
Short-term lease cost	258	350	649	745
Operating lease expense	2,754	$ 3,112	8,492	9,067
Balance sheet assets and liabilities related to operating leases
Operating lease ROU assets, net	$ 23,856		$ 23,856		$ 27,936
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets, Noncurrent.		Other Assets, Noncurrent.
Operating lease liabilities, current portion	$ 7,646		$ 7,646		8,537
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Other Liabilities, Current		Other Liabilities, Current
Operating lease liabilities, long-term	$ 16,742		$ 16,742		19,713
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	Other Liabilities, Noncurrent		Other Liabilities, Noncurrent
Total operating lease liabilities	$ 24,388		$ 24,388		$ 28,250
Weighted average remaining lease term	4 years 2 months 12 days		4 years 2 months 12 days
Weighted average discount rate	4.20%		4.20%
Cash flow information related to operating leases
Cash paid for operating lease liabilities			$ 7,773	7,664
ROU assets obtained in exchange for new lease obligations			1,810	$ 3,718
Maturities of operating lease liabilities
Less than one year	$ 8,475		8,475
1 - 2 years	5,929		5,929
2 - 3 years	4,866		4,866
3 - 4 years	3,215		3,215
4 - 5 years	2,060		2,060
Thereafter	2,421		2,421
Total	26,966		26,966
Less: imputed interest	(2,578)		(2,578)
Total lease liabilities	$ 24,388		$ 24,388

Impairment, Restructuring and Other Charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Impairment, Restructuring and Other Charges
Net benefit recognized related to reimbursement from insurance	$ 285	$ (4,548)	$ (7,912)	$ (1,520)
Impairment charges		3,258	552	3,258
Acquisition-related costs	22	303	277	303
Employee termination costs	213	1,103	4,156	1,596
Mexico transaction costs			2,691
Facility closures/consolidation costs (benefit)	166	30	1,420	30
Legal costs (recoveries), net	(686)	(146)	(1,184)	(3,667)
Total expensed (benefit), net	(285)	4,548	7,912	1,520
Other operational efficiency activities
Impairment, Restructuring and Other Charges
Net benefit recognized related to reimbursement from insurance	(700)		(1,200)
Acquisition-related costs	200		300
Employee termination costs	200		1,600
Total expensed (benefit), net	300
Security Division
Impairment, Restructuring and Other Charges
Impairment charges			552
Acquisition-related costs	22	107	250	107
Employee termination costs	213	328	4,010	734
Mexico transaction costs			2,691
Facility closures/consolidation costs (benefit)	166	30	1,420	30
Total expensed (benefit), net	401	465	8,923	871
Healthcare Division
Impairment, Restructuring and Other Charges
Net expenses	4,500		1,500
Assets Impaired		3,300		3,300
Impairment charges		3,258		3,258
Acquisition-related costs			27
Employee termination costs		466		466
Total expensed (benefit), net		3,724	27	3,724
Optoelectronics and Manufacturing Division
Impairment, Restructuring and Other Charges
Acquisition-related costs		41		41
Employee termination costs		259	146	277
Total expensed (benefit), net		300	146	318
Corporate
Impairment, Restructuring and Other Charges
Acquisition-related costs		155		155
Employee termination costs		50		119
Legal costs (recoveries), net	(686)	(146)	(1,184)	(3,667)
Total expensed (benefit), net	$ (686)	$ 59	(1,184)	$ (3,393)
Turnkey Screening Program \| Security Division
Impairment, Restructuring and Other Charges
Net benefit recognized related to reimbursement from insurance			7,200
Impairment charges			600
Employee termination costs			2,800
Mexico transaction costs			2,700
Facility closures/consolidation costs (benefit)			1,100
Total expensed (benefit), net			$ 7,900

Borrowings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020	Apr. 30, 2019	Feb. 28, 2017
Borrowings
Borrowings outstanding	$ 0		$ 0		$ 59,000
Revolving Credit Facility
Borrowings
Maximum borrowing capacity						$ 535,000
Sub-limit available for letters of credit						300,000
Unused commitment fee (as a percent)			0.10%
Amount outstanding under letters of credit	66,700		$ 66,700
Available credit facility	468,300		$ 468,300
Revolving Credit Facility \| Minimum
Borrowings
Unused commitment fee (as a percent)			0.10%
Revolving Credit Facility \| Maximum
Borrowings
Increase in the credit agreement's borrowing capacity available under certain circumstances						$ 250,000
Unused commitment fee (as a percent)			0.25%
Revolving Credit Facility \| LIBOR
Borrowings
Interest rate margin (as a percent)			1.00%
Revolving Credit Facility \| LIBOR \| Minimum
Borrowings
Interest rate margin (as a percent)			1.00%
Revolving Credit Facility \| LIBOR \| Maximum
Borrowings
Interest rate margin (as a percent)			1.75%
1.25% Convertible Senior Notes Due 2022
Borrowings
Principal amount	$ 287,500		$ 287,500				$ 287,500
Interest rate (as a percentage)	1.25%		1.25%				1.25%
Liability component of convertible debt	$ 242,400		$ 242,400
Equity component of convertible debt	45,100		45,100
Debt issuance costs	7,700		7,700
Debt Component of debt issuance costs	6,500		6,500
Equity component of debt issuance costs	1,200		1,200
Total interest expense	3,300	$ 3,300	10,000	$ 9,700
Contractual interest expense	900	900	2,700	2,700
Amortization of debt discount	2,200	2,100	6,400	6,100
Amortization of debt issuance costs	300	$ 300	900	$ 900
Unamortized discount	12,680		12,680		19,075
Unamortized debt issuance costs	$ 1,665		$ 1,665		$ 2,547
Effective interest rate (as a percent)	4.50%		4.50%
Bank lines of credit
Borrowings
Amount outstanding under letters of credit	$ 63,000		$ 63,000
Available credit facility	$ 12,900		$ 12,900

Stockholders' Equity - Stock-based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Stock-based Compensation
Stock-based compensation expense		$ 7,565	$ 5,837	$ 19,386	$ 18,097
RSU
Stock-based Compensation
Unrecognized compensation cost		$ 20,700		$ 20,700
Weighted-average period				1 year 10 months 24 days
Shares
Nonvested at the beginning of the period (in shares)				423,590
Granted (in shares)				337,778
Vested (in shares)				(310,939)
Forfeited (in shares)				(8,244)
Nonvested at the end of the period (in shares)		442,185		442,185
Weighted-Average Fair Value
Nonvested at the beginning of the period (in dollars per share)				$ 88.68
Granted (in dollars per share)				80.32
Vested (in dollars per share)				86.20
Forfeited (in dollars per share)				84.47
Nonvested at the end of the period (in dollars per share)		$ 84.12		$ 84.12
Stock options
Stock-based Compensation
Unrecognized compensation cost		$ 500		$ 500
Weighted-average period				2 years 1 month 6 days
Number of Options
Outstanding at the beginning of the period (in shares)				326,304
Granted (in shares)				22,171
Exercised (in shares)				(87,235)
Expired or forfeited (in shares)				(2,710)
Outstanding at the end of the period (in shares)		258,530		258,530
Exercisable at the end of the period (in shares)		222,512		222,512
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)				$ 44.41
Granted (in dollars per share)				82.17
Exercised (in dollars per share)				34.44
Expired or forfeited (in dollars per share)				78.71
Outstanding at the end of the period (in dollars per share)		$ 50.65		50.65
Exercisable at the end of the period (in dollars per share)		$ 45.03		$ 45.03
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period				2 years 9 months 18 days
Exercisable at the end of the period				1 year 9 months 18 days
Aggregate Intrinsic Value
Outstanding at the end of the period		$ 11,818		$ 11,818
Exercisable at the end of the period		$ 11,387		$ 11,387
Performance-based restricted stock units
Shares
Granted (in shares)				136,242	81,621
Performance-based restricted stock units \| Minimum
Weighted-Average Fair Value
Payout as a percentage of the original number of shares awarded or units awarded, which are converted into shares of the Company's common stock					0.00%
Performance-based restricted stock units \| Maximum
Weighted-Average Fair Value
Payout as a percentage of the original number of shares awarded or units awarded, which are converted into shares of the Company's common stock				400.00%
2012 Plan
Stock-based Compensation
Additional maximum number of shares of common stock which may be issued	1,650,000
Increase in maximum number of shares authorized under share based compensation plan	7,100,000
Weighted-Average Fair Value
Shares available for grant		2,100,000		2,100,000
2012 Plan \| RSU
Weighted-Average Fair Value
Number of shares available for grant reduced for each award granted				1.87
Number of shares available for grant increased for each award forfeited and returned				1.87
2006 Plan
Number of Options
Granted (in shares)				0
Cost of goods sold
Stock-based Compensation
Stock-based compensation expense		$ 199	189	$ 571	$ 517
Selling, general and administrative
Stock-based Compensation
Stock-based compensation expense		7,223	5,520	18,391	17,153
Research and development
Stock-based Compensation
Stock-based compensation expense		$ 143	$ 128	$ 424	$ 427

Segment Information - Operations and Identifiable Assets (Details) $ in Thousands	3 Months Ended		9 Months Ended		21 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($) customer segment	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($) customer	Jun. 30, 2020 USD ($)
Operations and identifiable assets by industry segment
Number of identifiable industry segments \| segment			3
Total revenues	$ 283,787	$ 292,883	$ 814,704	$ 889,077
Income (loss) from operations	32,466	23,625	81,517	81,431
Segments assets	1,325,960		$ 1,325,960		$ 1,325,960	$ 1,268,541
Number of major customers \| customer					0
Concentration (as a percent)					10.00%
Customer Concentration Risk
Operations and identifiable assets by industry segment
Concentration (as a percent)			10.00%
Accounts receivable \| Customer Concentration Risk
Operations and identifiable assets by industry segment
Number of major customers \| customer			1
Concentration (as a percent)			13.00%
Operating Segments \| Security Division
Operations and identifiable assets by industry segment
Total revenues	151,409	187,076	$ 431,420	578,477
Income (loss) from operations	23,969	24,525	52,651	73,405
Segments assets	751,008		751,008		$ 751,008	758,054
Operating Segments \| Healthcare Division
Operations and identifiable assets by industry segment
Total revenues	54,023	45,662	160,421	127,862
Income (loss) from operations	7,333	1,682	25,640	5,793
Segments assets	211,226		211,226		211,226	208,857
Operating Segments \| Optoelectronics and Manufacturing Division
Operations and identifiable assets by industry segment
Total revenues	90,278	70,240	257,713	216,684
Income (loss) from operations	10,484	7,309	29,638	25,096
Segments assets	275,976		275,976		275,976	232,408
Corporate
Operations and identifiable assets by industry segment
Income (loss) from operations	(9,078)	(10,161)	(25,895)	(23,578)
Segments assets	126,157		126,157		126,157	109,178
Eliminations
Operations and identifiable assets by industry segment
Total revenues	(11,923)	(10,095)	(34,850)	(33,946)
Income (loss) from operations	(242)	$ 270	(517)	$ 715
Segments assets	$ (38,407)		$ (38,407)		$ (38,407)	$ (39,956)

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2021	Jun. 30, 2020
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	17,980,207	18,011,982
Common stock, shares outstanding	17,980,207	18,011,982

Basis of Presentation - Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020
Fair Value of Financial Instruments
Liabilities-contingent consideration	$ 13,867	$ 19,337
Recurring
Fair Value of Financial Instruments
Assets - Insurance company contracts		45,015	$ 37,155
Liabilities-contingent consideration		19,337	13,867
Recurring \| Level 2
Fair Value of Financial Instruments
Assets - Insurance company contracts		45,015	37,155
Recurring \| Level 3
Fair Value of Financial Instruments
Liabilities-contingent consideration		$ 19,337	$ 13,867

Basis of Presentation - Derivative Instruments and Hedging Activity (Details) $ in Millions	Mar. 31, 2021 USD ($)
Foreign currency forward contracts
Derivative Instruments and Hedging Activity
Notional amounts	$ 23.5

Business Combinations (Details) $ in Millions	1 Months Ended
Business Combinations (Details) $ in Millions	Jul. 31, 2020 USD ($)
Business Combinations
Total purchase price	$ 3.0
Maximum contingent consideration	$ 12.0

Stockholders' Equity - Share Repurchase Program (Details) - Common stock - shares	9 Months Ended
	Mar. 31, 2021	Aug. 31, 2020	Apr. 30, 2020
Share Repurchase Program
Number of repurchased shares authorized		3,000,000	1,000,000
Number of shares repurchased	322,588

Basis of Presentation - Cash Equivalents (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Cash Equivalents
Cash and cash equivalents	$ 92,465	$ 76,102
Cash, cash equivalents, and investments held by our foreign subsidiaries and subject to repatriation tax considerations(as a percentage)	58.00%

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2021 USD ($)
Changes in the carrying value of goodwill
Balance at the beginning of the period	$ 310,627
Goodwill acquired or adjusted during the period	5,149
Foreign currency translation adjustment	3,435
Balance at the end of the period	319,211
Security Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	203,627
Goodwill acquired or adjusted during the period	1,905
Foreign currency translation adjustment	264
Balance at the end of the period	205,796
Healthcare Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	39,983
Goodwill acquired or adjusted during the period	3,244
Foreign currency translation adjustment	333
Balance at the end of the period	43,560
Optoelectronics and Manufacturing Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	67,017
Foreign currency translation adjustment	2,838
Balance at the end of the period	$ 69,855

Impairment, Restructuring and Other Charges - Changes in the accrued liability (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2021 USD ($)
Restructuring and other charges
Balance at the beginning of the period	$ 2,628
Restructuring and other charges (benefit), net	4,669
Payments, adjustments and reimbursements, net	(5,600)
Balance at the end of the period	1,697
Employee Termination Costs
Restructuring and other charges
Balance at the beginning of the period	545
Restructuring and other charges (benefit), net	4,156
Payments, adjustments and reimbursements, net	(4,570)
Balance at the end of the period	131
Facility Closure/ Consolidation Cost
Restructuring and other charges
Balance at the beginning of the period	201
Restructuring and other charges (benefit), net	1,420
Payments, adjustments and reimbursements, net	(1,501)
Balance at the end of the period	120
Acquisition-related Costs
Restructuring and other charges
Restructuring and other charges (benefit), net	277
Payments, adjustments and reimbursements, net	(277)
Balance at the end of the period	0
Legal Costs and Settlements
Restructuring and other charges
Balance at the beginning of the period	1,882
Restructuring and other charges (benefit), net	(1,184)
Payments, adjustments and reimbursements, net	748
Balance at the end of the period	$ 1,446

Borrowings - other borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Components of long-term debt
Convertible notes	$ 273,155	$ 265,878
Other long-term debt	1,767	2,120
Total	274,922	267,998
Less current portion of long-term debt	(925)	(926)
Long-term portion of debt	273,997	267,072
1.25% Convertible Senior Notes Due 2022
Components of long-term debt
Principal amount	287,500	287,500
Unamortized discount	(12,680)	(19,075)
Unamortized debt issuance costs	$ (1,665)	$ (2,547)

Commitments and Contingencies - Contingent Acquisition Obligations (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 31, 2017	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jul. 31, 2020
Contingent Acquisition Obligations
Remaining maximum amount of contingent consideration						$ 12,000
Addition of contingent earnout obligations				$ 7,304
Foreign currency translation adjustment				523
Changes in fair value for contingent earnout obligations				(2,357)
Ending fair value		$ 19,337		19,337
Certain acquisitions
Contingent Acquisition Obligations
Remaining maximum amount of contingent consideration		30,200		30,200
Contingent payment made		$ 1,500	$ 200	$ 900	$ 200
Mr. Chopra, Chief Executive Officer \| Deferred bonus
Indemnifications and Certain Employment-Related Contingencies
Bonus payment on or within 45 days of January 1, 2024 contingent upon continued employment through that date	$ 13,500
Maximum number of days after January 1, 2024, bonus payment due	45 days

Commitments and Contingencies - Product Warranties (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Changes in provision for warranties
Warranty provision at beginning of period	$ 20,825	$ 21,724
Additions and adjustments	3,759	6,105
Reductions for warranty repair costs	(4,975)	(6,557)
Warranty provision at end of period	$ 19,609	$ 21,272